The Leap of the Tiger: How Malaysia Can Escape the Middle-Income Trap

June 23, 2015

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Reda Cherif, and Fuad Hasanov. The Leap of the Tiger: How Malaysia Can Escape the Middle-Income Trap, (USA: International Monetary Fund, 2015) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Only a few European economies and Korea and Taiwan Province of China reached high-income status during 1970-2010. Malaysia’s real income per capita increased to 26 percent of the U.S. level in 2010 from 20 percent in 1970. Despite relatively strong growth and a substantial improvement in export sophistication, Malaysia’s total factor productivity lagged behind that of Korea and Taiwan Province of China. We argue that what characterizes their experience in contrast to Malaysia’s is the creation of technologies by domestic firms and a push to leapfrog to the technological frontier at an early stage of development.

Subject: Economic sectors, Exports, Income, International trade, Manufacturing, National accounts, Production, Productivity, Technology

Keywords: Asia and Pacific, Auto parts firm, Electronics firm, Exports, Firm development, Firm Hyundai, Firms in the electronics sector, Global, Global brand, Government intervention, Growth, Income, Innovation, Invested company share, Local firm, Manufacturing, Middle-income trap, Productivity, Spin-off firm, Technology, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2015/131
Stock No:

WPIEA2015131
ISBN:

9781513556017
ISSN:

1018-5941

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